# Question

Consider the demand for Fresh Detergent in a future sales period when Enterprise Industries’ price for Fresh will be x1 = 3.70, the average price of competitors’ similar detergents will be x2 = 3.90, and Enterprise Industries’ advertising expenditure for Fresh will be x3 = 6.50. A 95 percent prediction interval for this demand is given on the following Excel add-in (MegaStat) output:

a. Find and report the 95 percent prediction interval on the output. If Enterprise Industries plans to have in inventory the number of bottles implied by the upper limit of this interval, it can be very confident that it will have enough bottles to meet demand for Fresh in the future sales period. How many bottles is this? If we multiply the number of bottles implied by the lower limit of the prediction interval by the price of Fresh ($ 3.70), we can be very confident that the resulting dollar amount will be the minimum revenue from Fresh in the future sales period. What is this dollar amount?

b. Calculate a 99 percent prediction interval for the demand for Fresh in the future sales period.

a. Find and report the 95 percent prediction interval on the output. If Enterprise Industries plans to have in inventory the number of bottles implied by the upper limit of this interval, it can be very confident that it will have enough bottles to meet demand for Fresh in the future sales period. How many bottles is this? If we multiply the number of bottles implied by the lower limit of the prediction interval by the price of Fresh ($ 3.70), we can be very confident that the resulting dollar amount will be the minimum revenue from Fresh in the future sales period. What is this dollar amount?

b. Calculate a 99 percent prediction interval for the demand for Fresh in the future sales period.

## Answer to relevant Questions

Classify each of the following qualitative variables as ordinal or nominative. Explain your answers. Qualitative Variable Categories Personal computer operating system.. Windows XP Windows Vista Windows 7 Windows 8 ...How do we use dummy variables to model the effects of a qualitative independent variable? Recall from Exercise 14.5 that Enterprise Industries has observed the historical data in Table 14.5 concerning y (demand for Fresh liquid laundry detergent), x1 (the price of Fresh), x2 (the average industry price of ...(1) Analyze the studentized deleted residuals in the page margin for Options 1 and 2 (see SDR1 and SDR2). (2) Is hospital 14 an outlier with respect to its y value when using Option 2? (3) Consider a questionable large ...The unexplained variation for Model 1 of the previous exercise is .3936. If we set both β5 and β6 in this model equal to 0 (that is, if we eliminate the dummy variable portion of this model), the resulting reduced model ...Post your question

0